Complete news archive

  • CMBS market continues to stabilise

    April marks the eleventh straight month of improvement in the delinquency rate for US commercial real estate loans in CMBS, says Trepp. The rate fell 10bp to 6.44% and is now 259bp lower than it was a year ago.

    The delinquency rate has consistently fallen 15bp-50bp over recent months and Trepp attributes the relative slow-down last month to the completion .......

    News Round-up 2 May 2014

  • APRA proposal 'would increase risk'

    The Australian Prudential Regulation Authority's (APRA) proposed approach to securitisation would make master trust vehicles unworkable for Australian financial institutions, says Fitch. APRA is concerned that master trusts do not pass significant risk away from the originator of the assets and could increase systemic risk (SCI 29 April).

    Fitch notes that APRA's proposal would increase risk to bond investors and .......

    News Round-up 2 May 2014

  • ABCP conduits remain attractive

    US ABCP conduits remain a significant source of funding for core bank clients and provide a valuable offering for investors, according to Fitch. Collateral credit quality and performance measures remain strong despite declines in outstandings.

    Fitch affirmed 25 US ABCP programmes in late March. Outstandings across those programmes totalled US$106bn.

    Auto and commercial, trade receivables, credit cards and student loans .......

    News Round-up 2 May 2014

  • Capital idea

    Housing finance solution debated

    A US senate markup hearing took place this week for the Crapo-Johnson bill (SCI 12 March), although it was recessed without a vote. Over 100 filed amendments await during a future markup, with the final treatment of the first-loss piece in single-family deals one of the more pressing concerns for the RMBS market.

    SFIG notes that although the senate committee .......

    News Analysis 2 May 2014

  • Euro eyes on French RMBS

    The European RMBS market is currently abuzz with interest in an upcoming French deal. Meanwhile, secondary market spreads continue to grind tighter as activity levels remain restricted.

    The long-awaited deal from Credit Foncier de France - CFHL-1 2014 - is being marketed via Credit Suisse, JPMorgan, Lloyds, Natixis and RBS. It provides a rare opportunity to take French residential exposure .......

    Market Reports 1 May 2014

  • Coterminous lease issues eyed

    Coterminous leases could be problematic for 2005-2007 vintage US CMBS loans that are scheduled to mature in 2015-2017. Loans with coterminous leases have typically experienced lower refinancing rates, according to a recent Barclays Capital analysis.

    Barclays Capital CMBS analysts estimate that about 15% of the office, retail and industrial loans maturing during 2015-2017 have significant exposure to coterminous leases. Over .......

    News 1 May 2014

  • Greene King bonds boosted

    Greene King has sold 275 non-core tenanted pubs to Hawthorn Leisure for £75.6m. The proceeds are expected to be recycled into the managed estate, a credit positive for the pubco's securitisation

    The pub sales generated EBITDA of £12.4m, implying a disposal multiple of 6.1x, according to Barclays Capital European securitisation analysts. It is unclear whether this multiple was pre- or .......

    News Round-up 1 May 2014

  • FHFA pay-out ratios discussed

    Fourteen large banks that sold private label MBS to Fannie Mae and Freddie Mac have now settled with the FHFA (SCI passim). A loss analysis undertaken by Deutsche Bank RMBS strategists suggests that Bank of America reached the most favourable agreement with the FHFA so far, due to the low loss-based pay-out ratio.

    Excluding the most recent settlement with First .......

    News 1 May 2014

  • Positive performance for GSE deals

    Loan performance for GSE risk-sharing RMBS deals has been positive so far, according to Fitch in a new monthly report. To date, seven risk-sharing transactions have come to the market, with quarterly issuance expected from both Fannie Mae and Freddie Mac.

    "Since the first risk-sharing transaction was issued last year, issuance has been steady and performance has been excellent," comments .......

    News Round-up 1 May 2014

  • CVA data collection underway

    The EBA has launched a data collection exercise to advise the European Commission on appropriate amendments to the European credit valuation adjustment (CVA) framework and inform discussions on the CVA risk charge under Basel 3. This exercise will be carried out on a voluntary basis, but the EBA expects banks with relatively substantial portfolios of OTC derivatives to participate in .......

    News Round-up 1 May 2014

  • Credit unit leader named

    United First Partners has appointed Pascal Marionneau as global head of its credit solutions business line. He becomes a managing partner and a member of the executive board and will run United First Partners Capital (UFP Capital).

    UFP Capital will focus on credit assets held on financial institutions' balance sheets. As well as sourcing and distribution, the business will also .......

    Job Swaps 1 May 2014

  • Capital markets sales head joins

    CoreLogic has appointed Michael Ceppetelli as capital markets svp. He will lead the sales and business development teams that focus on institutional investors and capital markets clients.

    Ceppetelli joins from Thomson Reuters, where he was head of US sales for both the equity and fixed income teams within the financial and risk division. Before that he held a range of .......

    Job Swaps 1 May 2014

  • Call for change in delinquency reporting

    DBRS proposes that the reporting of delinquency statistics in CMBS be amended to include 'DPO', 'note sale' and 'other or TBD', given the prevalence of loss experienced by loans under these work-out strategies. A new study undertaken by the agency - which measures the historical frequency of default and loss severity of CMBS loans that experience different depths of delinquency .......

    News Round-up 1 May 2014

  • EFH credit event called

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a bankruptcy credit event occurred in respect of four Energy Future Holdings entities - Energy Future Holdings Corp, Texas Competitive Electric Holdings Company, Energy Future Intermediate Holding Company and EFIH Finance Inc. The move comes after the firm filed voluntary petitions for reorganisation under Chapter 11 (SCI 30 April). ISDA is .......

    News Round-up 1 May 2014

  • Value seen in Italian RMBS

    A number of Italian RMBS that were previously retained by their originators have been remarketed and publicly placed in recent months (see SCI's issuance database). This trend is expected to continue, with the ECB encouraging issuers to rely less on repo financing.

    JPMorgan European securitisation analysts estimate that retained Italian RMBS issuance totalled just over €170bn between 2008 .......

    News 30 April 2014

  • Solid performance for auto ABS

    US auto ABS prime and subprime annualised net losses (ANL) respectively sank by 37% and 28% on a monthly basis in March, according to Fitch. The agency notes that strong seasonal patterns kicked in and should position the sector for solid asset performance in the coming months.

    March's loss rates were within range of record lows recorded in the 2012-2013 .......

    News Round-up 30 April 2014

  • ABS CDO auction due

    An auction has been scheduled for Margate Funding I on 20 May. The collateral shall only be sold if the proceeds are greater than or equal to the auction call redemption amount. The collateral manager, although it may not have been the highest bidder, will have the option to purchase the securities (or any sub-pool) for a purchase price equal .......

    News Round-up 30 April 2014

  • Credit vet joins European push

    Tikehau Group has appointed Debra Anderson to its private debt business. She will be based in London and take responsibility for expanding the credit business on a pan-European basis alongside Patrick Marshall, who joined last year (SCI 6 September 2013).

    Anderson was most recently senior md at GSO/Blackstone, where she established Blackstone's CLO business and co-managed GSO's European customised credit .......

    Job Swaps 30 April 2014

  • Aussie RMBS delinquencies decline

    Moody's reports that Australian RMBS 30-plus day delinquencies fell by 57bp in 2013 from 2012. Improved performance was observed in 80 out of 87 regions across the country, ranging from 1bp to 133bp.

    "Out of the eight states and territories, New South Wales showed the biggest improvement in delinquencies, of 75bp between 2012 and 2013," says Alena Chen, a Moody's .......

    News Round-up 30 April 2014

  • Further PLS suit settled

    First Horizon National Corporation, as well as related companies and specifically named individuals, has settled with the FHFA for US$110m. The settlement resolves claims against First Horizon concerning private-label mortgage-backed securities sold to Fannie Mae and Freddie Mac between 2005 and 2007.

    First Horizon will pay US$61.6m to Fannie Mae and US$48.4m to Freddie Mac. The FHFA has now reached .......

    Job Swaps 30 April 2014

  • Irish RMBS tendered

    EBS has commenced a tender offer for €853.81m Emerald Mortgages No. 4 class A, B and C RMBS bonds. Prices are to be determined pursuant to an unmodified Dutch auction, but the minimum purchase price for the paper is 88.5, 42 and 38 respectively. The acceptance amount for each class of notes is also to be determined.

    The lender says .......

    News Round-up 30 April 2014
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